The Robinhood Markets, Inc. (NASDAQ:HOOD) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

As you might know, Robinhood Markets, Inc. (NASDAQ:HOOD) last week released its latest third-quarter, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 3.2% short of analyst estimates at US$637m, and statutory earnings of US$0.17 per share missed forecasts by 3.4%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Robinhood Markets after the latest results.

See our latest analysis for Robinhood Markets

Taking into account the latest results, the consensus forecast from Robinhood Markets' 13 analysts is for revenues of US$2.70b in 2025. This reflects a decent 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 2.6% to US$0.61. In the lead-up to this report, the analysts had been modelling revenues of US$2.71b and earnings per share (EPS) of US$0.62 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$26.22, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Robinhood Markets at US$33.00 per share, while the most bearish prices it at US$19.50. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Robinhood Markets' revenue growth is expected to slow, with the forecast 9.5% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.9% per year. So it's pretty clear that, while Robinhood Markets' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$26.22, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Robinhood Markets going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.